dTOP is a tokenized index mirroring the best traders on dHEDGE.
The dHEDGE platform crowdsources the best managers around the world and ranks them based on their risk-adjusted returns. With dTOP anyone can easily get exposure to the best traders through one ERC-20 token.
You can think of dTOP as an actively managed ETF that constantly tracks the best traders in DeFi — the first of its kind!
How it works
dHEDGE ranks managers based on their Score. The Score in turn is a reflection of a value-weighted risk-adjusted return measure called Sortino Ratio.
At the end of each month, dTOP rebalances to the 10 pools with the highest rank (place 1 to 10 on the dHEDGE Leaderboard). Each pool has a weight in the index relative to their Score.
dTOP is managed by a bot that constantly tracks the pools in the index and their underlying exposures and also pays the gas for all the rebalancing it’s doing.
The idea behind DTOP is that everyone should benefit. dTOP gives DeFi users a set-and-forget way to get exposure to the best traders around the world.
As the value locked in dTOP increases, the dHEDGE platform TVL goes up and more value will be captured on the platform.
dTOP has a performance fee set at 10%. This is paid out to the underlying managers on a monthly basis relative to their weight in the index.